The UK professional indemnity insurance market in 2016
The following information gives a snapshot of the UK professional indemnity insurance market in 2016, including the market size, product distribution and examples of larger claims. This information is updated regularly.
Size of the market
- Estimated premium value of UK market; £ 1.8 billion
- Estimated number of UK policyholders; 1.4 million
- Growth in the self employed and freelance markets coupled with improved online product distribution has fuelled a considerable rise in policyholder numbers in the last 5 years.
- Over 500 different occupation types now purchase professional indemnity insurance. These include the traditional professions such as solicitors and accountants and also newer emerging professions in technology and science.
An example of a large professional negligence claim in the UK; A negligence claim of £1.6 billion was filed in 2013 against a major Accountancy firm. The claim was based on the auditing of a sub-prime lender. It was settled in 2015 just before it’s high court hearing and the terms of settlement remain confidential.
Main Types of Work Causing Professional Indemnity Insurance Claims (ex Medical)
- Conveyancing (Legal)
- Taxation (Accountancy)
- Investment Failure (Financial Advice)
- Survey and Valuation (Property)
- Design (Construction)
Distribution is dominated by specialist insurance brokers. Over 80% of all UK professional indemnity premium is placed through brokers.
Distribution of PI insurance online is the fastest growing sector of the market in terms of policy sales. Number of Google searches; 250,000
Largest professions by estimated open market annual premium
- Solicitors ; £ 300 million
- Accountants ; £ 100 million
- Chartered Surveyors / Property ; £ 60 million
- Financial Advisers ; £ 50 million
- Architects ; £ 50 million
- Consulting Engineers ; £ 70 million
- IT ; £ 50 million
Largest professional indemnity insurer; Lloyds of London
Other major insurers include; Royal and Sun Alliance, AIG, Hiscox, Travelers, Zurich, AXA, Manchester Underwriting, Tokyo Marine HCC.
Cities with industry recognised professional indemnity markets
This article is intended for information purposes only. Whilst all care has been taken to ensure the accuracy of the article it is not to be regarded as a substitute for specific advice. © 2016 Professional Indemnity Insurance Brokers Ltd - 0345 251 4000.